Taiwan Semiconductor Manufacturing TSMC The company claims its new overseas investment plans are backed by subsidies from the United Arab Emirates (UAE).
Recent reports have suggested that the Taiwanese contract chipmaker is planning to partner with Samsung Electronics. Switzerland for a project in the UAE. According to the Taipei Times, the endeavor will involve an investment of over $100 billion.
Executives from Taiwan Semiconductor have reportedly visited the UAE to discuss factories with advanced equipment similar to those in Taiwan.
Taiwan Semiconductor Corp. is focusing on expanding its business in the U.S. Last week, the company promoted Rose Castanelles, executive vice president of its Arizona division, to president. The company is a major supplier to Nvidia Corp. NVDA and Apple Inc. AAPLThe company also has at least two smartphone chip deals: one with Apple Inc. for the iPhone and another with Alphabet Inc. Google Google For Google Pixel 10 and Pixel 11.
Taiwan Semiconductor is building two factories in Arizona using 4nm, 3nm, and 2nm processes, and also plans to build a third factory in Arizona using the 2nm process.
The U.S. has offered $6.6 billion in federal grants and $5 billion in loans to semiconductor makers. Last week, the Federal Reserve cut its benchmark interest rate by 50 basis points to 4.75% to 5% to spur growth, which could be a boon for capital-intensive semiconductor companies.
Taiwan Semiconductor’s shares have risen 102% over the past 12 months, making it a key contract chipmaker for AI chips. Investors can gain exposure to Taiwan Semiconductor through the ProShares Nanotechnology ETF. small First Trust S Network Electric Vehicle & Future Vehicle Ecosystem ETF Cars.
Price Action: Taiwan Semiconductor shares were up 0.35% at $174.69 in pre-market trading as of last check on Monday.
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